The 2024 Budget Act (Chapter 35, Statutes of 2024) authorized a 7.95 percent reduction to FoPH funding beginning in fiscal year 2024-25 and as a result the total allocation for local assistance is $188,200,000 annually and ongoing. These funds are considered ongoing funds and part of the baseline state budget, which must be approved in the annual state budget process. Local assistance amount is pending annual budget approval for each upcoming state fiscal years. Below are anticipated total funding amounts through FY 2026-27:

III. Funding Reduction Methodology ​

In FY 2024-25, t​​o implement the reduction in local assistance funds available for FoPH, the California Department of Public Health, in consultation with the County Health Executives Association of California (CHEAC) and the California Conference of Local Health Officers (CCLHO), used the following weighted methodology to determine reductions to each LHJ: ​

• 20 percent of the $12.2M reduction ($2.44 million) is applied in an even percentage across all LHJs. Every LHJ’s allocation is reduced by 1.22 percent. 
• 80 percent of the $12.2M reduction ($9.76 million) is applied to LHJs proportionally based on their proportion of the total unspent funds reported in their FY 2023-24 expenditure reports for quarters 1 through 4 (as reported by July 30, 2024).
  

• Prioritizing the retention of current staff in LHJs that were successful in filling positions proposed on the FY 2023-24 Spend Plan. 
• Promoting effective spending to preserve FoPH funding in a challenging budget climate. 
• Ensuring LHJs experiencing significant reductions are still afforded the opportunity to increase capacity beyond FY 2023-24 through access to redistributed funding and through alternate capacity building support mechanisms. 
• Providing LHJs with stability in funding over the  three fiscal years following the initial reduction in FY 24/25 for planning purposes.
  

For FoPH FY 2025-26, CDPH will continue to actively monitor invoices and expenditure rates submitted by LHJs to ensure that FoPH funds are being spent effectively (see section IX of this memo for more information on reporting requirements). CDPH will work to initiate a Funding Redistribution Process as early as at the end of quarter 1, dependent upon LHJ expenditure rates. If LHJs voluntarily identify anticipated unspent funds, those funds may be redistributed to other LHJs. Priority for receiving such funding would go to LHJs experiencing significant reductions based on the funding reduction methodology. 

1. Each Local Health Jurisdiction must dedicate at least 70 percent of funds to support the hiring of permanent city or county staff, including benefits and training.
   
2. Remaining funds, not to exceed 30 percent, may be used for equipment, supplies, and other administrative purposes such as facility space, furnishings, and travel.​
   

1. Each Workplan should be informed by a Community Health Assessment (CHA), Community Health Improvement Plan (CHIP), and/or local Strategic Plan.
   
2. All LHJs are required to measure and evaluate the process and outcome of hiring permanent staff.​
   

1. Workplans: LHJs are not required to submit updated workplans for FY 2025-26; however, they may submit a revision to their previously approved three-year Workplan at any time.
   
2. Spend Plans: LHJs are required to submit updated Spend Plans for FY 2025-26 by August 15th, 2025.
   
   • If the FY 2025-26 Spend Plan submissions represent less than a 25% change from previous FY 2024-25 allocations, please assume Spend Plans are approved and proceed with initiating spending. There is no need to wait until the FY 2025-26 Spend Plan is approved. 
   • CDPH will be collecting Spend Plan submissions through the CDPH Future Track system.  If your LHJ still needs assistance with system access, please email FoPHfunding@cdph.ca.gov. 
     
3. CDPH will provide Spend Plan Office Hours in July to provide technical assistance on Spend Plan submissions through the CDPH Future Track system. As a reminder, your Agency should consider the following when developing your Spend Plan: 
   
   • While not required, CDPH recommends that your agency may fund an administrative position to ensure fiscal accountability and reporting requirements of the various FoPH funding. At least 70% of your Agency funds must go towards the hiring, including benefits and training, of permanent city or county staff.
   • Your Agency may dedicate up to 30% of the allocated funding to support equipment, supplies, and other administrative purposes such as, facility space, furnishings, and travel.
   • While not required, CDPH encourages your Agency to recruit and give hiring preference to unemployed workers, underemployed workers, and a diversity of applicants from local communities who are qualified to perform the work. In addition, you are encouraged to work with applicants from your community.
   • While not required, CDPH encourages your Agency to explore transitioning limited-term or contracted staff/positions previously funded through limited term federal funding into permanent positions for the city; county; or city and county.
   • If your Agency will be dedicating a portion of your funds to another LHJ to increase regional capacity, your Agency shall submit a letter of support from the LHJ receiving those funds. Adjustments shall be reflected in the Spend Plan that is submitted to CDPH for review and approval. The letter shall be sent as an attachment to the FoPHfunding@cdph.ca.gov.
     
4. As a reminder, your Agency must maintain the following minimum requirements for the FoPH funding and include descriptions in your Agency’s Workplan: 
   
   • A description of how your Agency will achieve 24/7 Health Officer’s coverage.
   • A description of how these funds will assist your Agency in meeting your CHA/CHIP and/or local Strategic Plan goals. Please either attach a copy or provide links to your CHA, CHIP, and/or Strategic Plan and/or a date when these will become available. In addition, provide a description of how your agency will measure/evaluate the impact of the FoPH funding.
   • A description of how your Agency will use FoPH funding to meet your LHJ equity goals.  
   • A description of how your Agency will use FoPH funding to become or sustain capacity as a learning organization, including continuous quality improvement and Results-Based Accountability/evaluation.
   • Commit to Health Officer and Health Director’s participation in Regional Public Health Office monthly or quarterly convenings as determined by the Region and CDPH.
     
5. In advance of the Spend Plan due date, your Agency should respond to CDPH acknowledging that you accept the allocation funds outlined in the Acknowledgement of Allocation letter. Please submit the Acknowledgment of Allocation Letter and Certification forms by July 31st, 2025. The Acknowledgement of Allocation Letter and Certification Form can be signed by any individual(s) in your jurisdiction designated to review and sign these types of forms.
   

1. Submit semi-annual Workplan progress reports on the status of timelines, goals, and objectives outlined in your Workplan. Note, if your Workplan is under review by CDPH and has not been approved by the progress report due date, you are still required to submit your Workplan progress report to CDPH. All Workplan deliverables will be submitted through the CDPH Future Track system. The table below outlines the Workplan reporting periods and due dates for FY 2025-26.

   ​​State Fiscal Year 2025-26 ​
   Semi-Annual Workplan Progress Report Period	Reporting Period	Due Date
   Period 1	July 1, 2025 - December 31, 2025	January 31, 2026
   Period 2	January 1, 2026 - June 30, 2026	July 30, 2026

   
   
2. Submit quarterly Spend Plan progress reports on the status of expenditures (Expenditure Report) and hiring (Hiring/Personnel Report) progress outlined in your Spend Plan to CDPH. While not required, it is also highly encouraged and recommended by CDPH that LHJs submit monthly expenditure information in the CDPH Future Track system to allow for close monitoring of spending. Note, if your Spend Plan is under review by CDPH and has not been approved by the due date, you are still required to submit your report to CDPH.​